The Liquor Control Board of Ontario generated $5 billion in sales for the first time - with a big jump in craft beer volumes - and paid $1.8 billion to the government in its most recent fiscal year.
The Crown-owned liquor retailer, which is undergoing a provincial review of its operations by an advisory panel chaired by former TD Bank CEO Ed Clark, said Friday it had sales of $5.2 billion for the 2014-2015 fiscal year ended in March.
The retailer said careful management of expenses and increased consumer confidence helped sales grow 4.3 per cent. The provincial agency transferred a dividend of $1.805 billion to the Ontario government (excluding taxes), $65 million more than the previous year.
Net profit for 2014-15 grew $70 million to $1.818 billion, an increase of 4.2 per cent.
"This year's strong sales growth will allow LCBO to return another record financial dividend to the government," said Bob Peter, LCBO's president and CEO. "At a time when Ontario's economy is growing modestly, LCBO delivered these landmark results in fiscal 2014-2015 by effectively managing expenses and, above all, focusing on delivering excellent customer service."
Earlier this year, Clark advised the Liberal government against selling the province's liquor board, saying the province can better meet its debt reduction targets in other ways. He endorsed a plan to sell beer in 450 grocery stores across the province.
Clark's advisory panel is also reviewing the LCBO and is expected to issue a rep0rt by the end of the summer on how to make the retailer more profitable and efficient.
In breaking down its 2014-2015 0perati9ns, the liquor retailer said net sales of Ontario wine rose 6.8 per cent to $422.5 million while sales of craft beer jumped 35.9 per cent to $68.3 million, In both markets, locally produced products grew sharply
In other categories, sales were:
<ul type="disc">
<li>Spirits - $2.014 billion, up 2.4 per cent</li>
<li>Beer - $1.058 billion, up 5.7 per cent</li>
<li>Wine - $1.387 billion, up 4.0 per cent</li>
<li>Vintages - $475.4 million, up 7.9 per cent</li>
<li>Gift cards - $85.3 million, up 11.4 per cent</li>
</ul>
The LCBO was founded in 1927 and operates through 850 corporate-owned stores or agency outlets across the province. It has about 7,000 full- and part-time employees.

LCBO sales hit $5 billion for the first time

Read this for free.